Bitcoin is experiencing its largest decline since 2022 — the price of the leading cryptocurrency has fallen nearly 50% from its all-time high of $126,000, recorded in October 2025. For the first time since April 2025, the price of Bitcoin has dropped below $60,000.
This is reported by Finway
Main Reasons for the Decline and Capital Rotation
Wintermute analysts note that the key factors behind the collapse include:
- the exhaustion of institutional demand for cryptocurrencies;
- outflows from ETF products that were previously growth drivers;
- the nomination of Kevin Warsh as the head of the U.S. Federal Reserve;
- weak quarterly results from leading technology companies, including a 10% drop in Microsoft shares;
- a massive decline in the precious metals market — silver lost 40% of its value in just three days.
Experts emphasize that the overvaluation of the artificial intelligence sector and active capital rotation have led to a decrease in risk appetite among large investors. A significant portion of investments has shifted from cryptocurrencies and traditional markets to the AI segment.
Sell Pressure, the Role of ETFs, and Market Prospects
According to Wintermute’s observations, structural sell pressure is intensifying in the market, particularly from American investors. The premium on Coinbase is at a discount, and OTC segment data indicates active selling of Bitcoins by counterparties from the U.S., even amid continued buybacks through ETFs.
After the U.S. presidential elections in November 2024, institutional demand that had supported the market noticeably decreased. Analysts emphasize that the AI sector has “consumed” a significant portion of investor capital, exacerbating the outflow of funds from the cryptocurrency market.
“The viral chart from last week showed that Bitcoin’s performance almost perfectly mirrors that of software companies in the S&P. The real story is that AI has been absorbing available capital at the expense of everything else for months,” the report states.
Wintermute emphasized that the current price dynamics of the market are primarily determined by leverage, as spot volumes remain low. Without a recovery in open interest, significant price movements are not expected, and structural recovery requires a return of spot demand, which currently shows almost no signs.
In a broader context, analysts indicate that the total unrealized losses of digital asset treasuries have reached approximately $25 billion and are concentrated in a few key assets. Bitcoin is currently trading below many cost levels of these treasuries, leading them to hold assets rather than accumulate them. This narrows the pool of main buyers in the market and makes attracting new capital less appealing.
Wintermute analysts predict that the market will remain in a zone of unstable price discovery with increased volatility in the near future. Until the Coinbase premium turns positive, ETF flows change direction, and base rates stabilize, it is difficult to expect a sustainable market recovery.